Canadians seem to have caught up with, and perhaps even surpassed, Americans in terms of the benefits they can get from buying real estate in Mexico; For quite some time, the US dollar has been at an all-time high against the Mexican peso, making buying a home in Mexico more attractive, simply because of the money saved by living in Mexico. For Canadians, a recent study suggesting that some of the major domestic markets in Canada have become “overheated”, i.e. inflated prices, combined with the fact that the dollar is at an all-time high against the US dollar, could make buying real estate in Mexico a very solid option from a financial point of view.

While Canadian property prices overall increased an average of 10% during the first quarter of 2010, the places where people buy the most (Toronto and Vancouver) have risen much more. The price of an average two-story home in Toronto, for example, increased more than 13% from a year ago to more than $550,000 CDN. In Vancouver, two-story homes are up nearly 20% to just under $990,000. While these rates look exciting, experts in Canada say these jumps are not sustainable and markets may be “overheated” and, compared to their reaction to the recession, “irrational.” The expected interest increases and these sky-high prices are expected to slow the market down during the year.

For homebuyers, this means they have the option to buy at really high prices, which are unlikely to increase significantly, in places where the cost of living is also very high. Alternatively, especially buyers who are considering investing in a second home should consider buying a home in Mexico. Let’s consider the benefits.

First, for the “average” price of a house in Toronto – more than $550,000 – a real estate buyer could find a beautiful luxury villa in many of Mexico’s most famous coastal cities, such as Playa del Carmen, Puerto Vallarta or La Paz, to name just a handful of examples. And this is comparing life in gray and snowy Toronto to a sunny paradise on a wide, beautiful white beach surrounded by subtropical jungle. For Canadians considering a second home, especially for vacations, or those who have the opportunity to move for retirement or other purposes, there is no comparison between the two options. Life in these Mexican locations, in addition to providing the highest level of luxury and convenience with international shopping, excellent medical care, championship golf clubs, and much more, is also considerably more affordable than in Toronto, Vancouver, or many other Canadian locations. .

Real estate in Mexico also presents one of the best investment opportunities. Condos and high-quality homes and condos in Mexico provide many vacation home owners with a reliable rental income to other vacationers while the property is not in use. Property management companies make this type of income quite easy. Another option is emerging tourist areas; the state of Campeche (across the Yucatan peninsula from Cancun) currently has development with beachfront lots starting at around $65,000. Although these lots include 20 m of virgin beach frontage, the area shows high potential for significant increases in property prices; two new luxury condominium developments, a recently restored colonial town and all the amenities currently available, with another $100,000 invested in building a home, these properties could sell for many times over in a few years.

To make all of this that much better, the loonie is at a high, at the same level as the US, and at an all time high against the peso, and is expected to stay that way for some time. . While prices will take time to adjust to the high-value dollar in Canada, this means that the same dollar will buy a lot more in Mexico, in terms of real estate, high-value purchases, and everyday items.

Given these conditions, all Canadians considering buying property may do better to consider real estate in Mexico.

RED TOPMexicoRealEstate; The Leading Network of Specialists in Mexico to Find and Buy Mexican Properties Safely